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The 
NORTH CAROLINA 

REGISTER 



RECEIVED 



MAY 17 1990 
2J^^ LIBRARY 

IN THIS ISSUE 



^9t> 



FINAL DECISION LETTER 

PROPOSED RULES 

Environment, Health and 
Natural Resources 

Insurance 

Nursing, Board of 

Secretary of State 

FINAL RULES 

List of Rules Codifled 

ISSUE DATE: MAY 15, 1990 



Volume 5 • Issue 4 • Pages 286-312 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published bi-monthly 
and contains information relating to agency, e.\ecuti\e, 
legislative and judicial actions required by or affecting 
chapter 150B of the General Statutes. All proposed, ad- 
ministrati\e rules and amendments filed under Chapter 
150B must be published in the Register. The Register 
will typically comprise appro.ximately fift>' pages per 
issue of legal te.xt. 

State law requires that a copy of each issue be pro- 
\ided free of charge to each county in the state and to 
\arious state officials and institutions. The Sorth Carolina 
Register is a\ailable by yearly subscription at a cost of 
one hundred and five dollars (SI05.00) for 24 issues. 

Requests for subscriptions to the Sorth Carolina 
Register should be directed to the Office of Ad- 
ministrative Hearings, P. O. Drawer 1 1666, Raleigh, \'. 
C. 27604, Attn: Subscriptions. 

ADOPTION, A.MEXDMENT, AND REPE.4L OF 
RULES 

An agency intending to adopt, amend, or repeal a rule 
must first publish notice of the proposed action in the 
Sorth Carolina Register. The notice must include the 
time and place of the public hearing: a statement of how- 
public comments ma\' be submitted to the agency either 
at the hearing or otherwise: the text of the proposed 
rule or amendment: a reference to the Statutory- 
Authority for the action and the proposed effective date. 

The Director of the Office of .Administrati\'e Hearings 
has authority to publish a summary, rather than the 
full text, of any amendment which is considered to be 
too lengthy. In such case, the full text of the rule con- 
taining the proposed amendment will be available for 
public inspection at the Rules Di\ision of the Office of 
Administrati\-e Hearings and at the office of the pro- 
mulgating agency. 

Unless a specific statute pro\ides otherwise, at least 
30 days must elapse following publication of the pro- 
posal in the SortJi Carolnia Register before the agencv 
may conduct the required public hearing and take ac- 
tion on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency 
must file any adopted or amended rule for approval by 
the -4dministrati\e Rules Rexiew Commission. Upon ap- 
proval of ARRC, the adopted or amended rule must be 
filed with the Office of Administrative Hearings. If it 
differs substantially from the proposed form published 
as part of the public notice, upon request by the agen- 
cy, the adopted \ersion will again be published in the 
North Carolina Register. 

A rule, or amended rule cannot become effecti\e 
earlier than the first day of the second calendar month 
after the adoption is filed with the Office of Ad- 
ministrati\e Hearings for publication in the NCAC. 

Proposed action on rules may be withdrawn by the 
promulgating agency at any time before final action is 
taken by the agencv. 

TEMPORARY RULES 

Under certain conditions of an emergency nature, 
some agencies ma>' issue temporary rules. A temporary- 
rule becomes effecti\-e when adopted and remains in 



effect for the period specified in the rule or 180 days, 
whichever is less. An agency adopting a temporan,- rule 
must begin normal nale-making procedures on the per- 
manent rule at the same time the temporary rule is 
adopted. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) is 
a compilation and index of the administrative rules of 
25 state agencies and 38 occupational licensing boards. 
The NCAC comprises approximately 15,000 letter size, 
single spaced pages of material of which approximate- 
Iv 35 "o is changed annuallv. Compilation and publica- 
tion of the NCAC is mandated by G.S. 150B-63(b). 

The Code is divided into Titles and Chapters. Each 
state agency is assigned a separate title which is fur- 
ther broken down by chapters. Title 21 is designated 
for occupational licensing boards. 

The NC.A.C is a\-ailable in two formats. 

(1) Single pages may be obtained at a minimum 
cost of two dollars and 50 cents (S2.50) for 10 
pages or less, plus fifteen cents (SO. 15) per each 
additional page. 

(2) The full publication consists of 52 volumes, 
totaling in excess of 15,000 pages. It is sup- 
plemented monthly with replacement pages. A 
one year subscription to the full publication in- 
cluding supplements can be purchased for 
seven hundred and fifty dollars (S750.00). In- 
di\-idual xolumes may also be purchased with 
supplement service. Renewal subscriptions for 
supplements to the initial publication axailable. 

Requests for pages of rules or \-olumes of the NCAC 
should be directed to the Office of Administrative 
Hearings. 

NOTE 

The foregoing is a generalized statement of the pro- 
cedures to be followed. For specific statutory language, 
it is suggested that .Articles 2 and 5 of Chapter 150B of 
the General Statutes be examined carefully. 

CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited h\ \-olume. issue, 
page number and date. 1:1 NCR 101-201, April 1, 1986 

refers to Volume 1, Issue 1, pages 101 through 201 of 
the North Carolina Register issued on .April 1, 1986. 



North Carolina Register. Published bi-monthly by 
the Office of Administrative Hearings, P.O. Drawer 
11666, Raleigh, North Carolina 27604, pursuant to 
Chapter 150B of the General Statutes. Subscriptions 
one hundred and five dollars (S105.00) per year. 
North Carolina Administrative Code. Published 
in looseleaf notebooks with supplement ser\-ice by 
the Office of Administrative Hearings, P.O. 
Drawer 1 1666, Raleigh, North Carolina 27604, pur- 
suant to Chapter 150B of the General Satutes. 
Subscriptions seven hundred and fifty dollars 
(S750.00). Individual volumes available. 



NORTH 
CAROLINA 
REGISTER 




Office of Adminhtnitive Hearings 

P. O. Draner 1 1666 

Raleigh. .\C 27604 

(919) 733 - 2678 



ISSUE CONTENTS 



Julian Mann III, 

Director 
James R. Scarcclla Sr., 

Dcpulv Director 
Molly \Iasich, 

Director A PA Services 



I. FINAL DECISION EE I lER 

Voting Riglits Act 286 



II. PROPOSED Rl LES 

Environment, Health, and 
Natural Resources 

Coastal Management 292 

Wildlife Resources 

Commission 293 

Insurance 

Life; Accident and Health 

Division 287 

Licensing Board 

Nursmg, Board of 300 

Secretary of State 

Securities Division 293 

III. EINAL Rl EES 

List of Rules Codified 302 

IV. CIMELV11\ E INDEX 311 



Staff: 

Ruby Creech, 

Puhlicalions Coordinator 
Teresa Kilpatrick, 

Editorial .1 ssislant 
Jean Shirley, 

Editorial .issistant 



NORTH CAROLINA REGISTER 

Publication Schedule 

(January 1990 - December 1991) 



Issue 


Last Day 


Last Dav 


Earlie 


St 


* 




Date 


for 


for 


Date for 


Earliest 




Filing 


Electronic 


Public 


Effective 






Filing 


I learing & 
Adoption by 
Agency 


Date 


*T + ***** 


******** 


******** 


******** 


** + * + **=! 


01 02 90 


12 07 89 


12 14 89 


02 01/90 


05 01 90 


01 16 90 


12 20 89 


12,29.89 


02/15 


90 


05 01 90 


0201/90 


01 10 90 


01/18 90 


03 03 


90 


0601 


90 


02 15 90 


01 25 90 


02 01 90 


03/17 


90 


06 01 


90 


03 01 90 


02 08 90 


02 15 90 


03 31 


90 


07 01 


90 


03 15 90 


02 22 90 


03 01 90 


04 14 


90 


07 01 


90 


04 02,. 90 


03 12 90 


03 19 90 


05. 02 


90 


08 01 


90 


04/16,90 


03 23,90 


03 30 90 


05/16 


90 


08,01 


90 


05/01/90 


04 09 90 


04 17 90 


05 31 90 


09 01 


90 


05 15 90 


04 24 90 


05 01 90 


06 14 90 


09 01 90 


06 01:90 


05 10 90 


05 17 90 


0701, 90 


10 01 90 


06 1590 


05 24 90 


06 01 90 


07/15,90 


10 01 90 


07 02,90 


06 11 90 


06 18 90 


OS/01 90 


11 01 90 


0716.90 


06 22.90 


06 29 90 


OS 15 90 


110190 


08 01. 90 


07 11 90 


07 18 90 


OS 31,90 


12 01 90 


08 15 90 


07 25 90 


08 01 90 


09, 14 90 


12 01 90 


09 04 90 


08 13 90 


08 20,90 


10 04 90 


01 01 91 


09 14 90 


08 24 90 


08/31 90 


10 14 90 


01 01 91 


10 01 90 


09 10 90 


09 17 90 


10 31 90 


02 01 91 


10 15 90 


09 25 90 


10 02 90 


11-14 90 


02 01 91 


11 01 90 


10 11 90 


10 18 90 


1 1 30 90 


03 0191 


1115 90 


10 24 90 


10 31 00 


12 14 90 


03 01 91 


12 03 90 


1 1 OS 90 


11 15 90 


1 02 9 1 


04 01 91 


12 14 90 


11 21 90 


11 30 90 


01 13 91 


04 01 91 


01 02 91 


12 07 90 


12 14 90 


02 01 91 


05 01 91 


02 01,91 


01 10 91 


01 18 91 


03 03 91 


06 01 91 


03 01 91 


02 08 91 


02 15 91 


03 31 91 


07 01 91 


04 01 91 


03,11 91 


03 18 91 


05 01 91 


08 01 91 


05 01 91 


04 10 91 


04 17 91 


05 3191 


09 01 91 


06 03 91 


05 10 91 


05 17 91 


07 03 91 


10 01 91 


07/01/91 


06 10 91 


06 17 91 


07 31 91 


11 01 91 


08/01,/91 


07 11 91 


07 18 91 


OS 31 91 


12 01 91 


09 03/91 


08 12 91 


08 19 91 


10 03 91 


01 01 92 


10 01.91 


09 10 91 


09 17 91 


10 31 91 


02 01 92 


11 01. 91 


10 11 91 


10 18 91 


12 01 91 


03 01 92 


12 02 91 


11 07 91 


11 14 91 


01 01 


92 


04 01 


92 



* The "Earliest Effecii\-e Date" is computed assuming that the public hearing 
and adoption occur in the calendar month immediately following the "Issue 
Date", that the agency files the rule with The Administratixe Rules Review 
Commission by the 20th of the same calendar month and that ARRC approves 
the fi-ile at the next calendar month meeting. 



VOTING RIGHTS ACT FINAL DECISION LETTER 



[G.S. I20-30.9U, effective July 16, 1986. requires that all letters and other documents issued by the 
A ttorney General of the United Stales in which a final decision is made concerning a "change af- 
fecting voting" under Section 5 of the Voting Rights Act of 1965 be published in the North Carolina 
Register. / 



U.S. Department of Justice 
Civil Rights Division 

.IRD:GS:ST:rac 

DJ 166-012-3 Voting Section 

Z7818 P.O. Box 66128 

Washington, DC. 20035-6128 

April 18, 1990 

George A. Weaver, Esq. 

l.ce, Rcece & Weaver 

P.O. Box 2047 

Wilson, North Carolina 27894-2047 

Dear Mr. Weaver: 

This refers to the realignment of voting precincts in Wilson County, North Carolina, submitted 
to the Attorney General pursuant to Section 5 of the Voting Rights Act of 1965, as amended, 42 U.S.C. 
1973c. We received your submission on February 21, 1990. 

The Attorney General does not interpose any objection to the change in question. However, we 
feel a responsibility to point out that Section 5 of the Voting Rights Act expressly provides that the 
failure of the Attorney General to object does not bar any subsequent judicial action to enjoin the 
enforcement of such change. See the Procedures for the Administration of Section 5 (28 CPR. 51.41). 



Sincerely, 



John R. Durme 

Assistant Attorney General 
Civil Riglits Division 



By: 



Barry II. Weinberg 
Acting Chief, Voting Section 



5:4 NORTH CAROLINA REGISTER May 15, 1990 2S6 



PROPOSED RULES 



HI LE 1 1 - DEPARTMENT OF 
rSSLRANCE 



ly otice is hereby given in accordance with G.S. 
I50B-I2 that the N.C. Department of Insurance 
intends to adopt rule(s) cited as II \CAC 12 
.0901 - .0917. 

1 he proposed effective date of this action is Oc- 
tober I, 1990. 

1 he public hearing will be conducted at 10:00 
a.m. on July 2. 1990 at Dobbs Building. 3rd Floor 
Conference Room. 430 A. Salisbun' Street. 
Raleigh. X.C. 2761 1. 

y^omment Procedures: Written comments may 
be sent to Rodney Finger, P.O. Box 263S7, 
Raleigh. \.C. 2'^6I I. Oral presentations may be 
made at the public hearing. Anyone having 
questions should call Rodney Finger at (919) 
733-5060, or Fllcn Sprenkel at { 919) 733-4700. 

CHAF'IER 12 - I II K: ACCIDHNT AND HEALTH 
DIMSION 

SECTION .0900 - UTILIZATION RE\ lEW 

.0901 ITRPOSE 

(a) The purpose of this Section is to: 

(1) promote the deliver, of quality health care 
in a cost cfTccti\'e manner; 

(2) foster greater coordination between health 
care providers, insureds, payers, and utili- 
zation review entities; 

(3) improve communications and knowledge 
of health care benefits and scr\ ices among 
all parties concerned before expenses are 
incurred; 

(4) protect insureds, payers, and health care 
providers by ensuring that qualified per- 
sons perform utilization re\iew and make 
informed decisions on the medical neces- 
sity of health care; 

(5) ensure that utilization rc\iew entities 
maintain confidentiality of medical re- 
cords in accordance with applicable state 
and federal laws; and 

(6) enhance the health and welfare of the citi- 
zens of North Carolina by pro\idmg for 
orderly and efficient review of health care; 
which re\iew minimizes unnecessary 
health care whale guaranteeing that in- 
sureds receive, and providers are compen- 
sated for. medically necessar\" health care. 

(b) In order to attain these ends, it is necessan." 
to establish minimum standards for utilization 



review entities; establish minimum standards for 
utilization review plans used in reviews; require 
payers to do business only with entities that meet 
such standards; and require payers that perform 
review for their own contracts to meet such 
standards. 

Statutory Authority G.S. 5S-50-60. 

.0902 DEFINITIONS 

As used in this Section: 

(1) "Adverse decision" means a full or partial 
denial of coverage for a requested service. 

(2) "Contract" means an insurance policy; 
hospital, medical, or dental service plan 
contract; HMO plan; preferred provider ar- 
rangement; self- insured workers' compen- 
sation plan; or multiple employer welfare 
arrangement; that provides benefits or ser- 
vices for health care. 

(3) "Criteria" means predetermined, measur- 
able elements of health care against which 
actual occurrences can be compared. 

(4) "Health care provider" or "provider" in- 
cludes any person who is licensed or other- 
wise registered or certified to engage in the 
practice of, or otherwise performs duties as- 
sociated with, any of the following: medi- 
cine, surgery, dentistry, pharmacy, opto- 
metr\', midwifery, osteopathy, podiatp,', 
chiropractic, radiology, nursing, physio- 
therapy, pathology, anesthesiology", anes- 
thesia, laborator\' analysis, rendering assist- 
ance to a physician, dental hygiene, 
psychiatry, psvchology; or a health ser\'ice 
facility as defmed m G.S. 13IE-176(9b). 

(5) "Insured" means any person eligible for 
health care benefits or scr\ices under a con- 
tract. 

(6) "License" means a payer's certificate of 
authority or registration. 

(7) "Payer" means any insurer or person 
subject to regulation and licensing under 
.Articles 1 through 67 of Chapter 58 of the 
General Statutes, including preferred pro- 
vider arrangements and third party adminis- 
trators; means an individual employer or 
group of employers sell~-insuring their vvork- 
ers' compensation liabilities pursuant to 
G.S. 97-93; and means a multiple employer 
welfare arrangement. 

(8) "Person" includes an individual, aggre- 
gation of individuals, partnership, corpo- 
ration, or unincorporated association. 

(9) "Standards" means professionally devel- 
oped statements of the range of acceptable 
variation from a norm or criteria. 



2s: 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



PROPOSED RULES 



(10) "Utilization review" or "review" means a 
system for reviewing the necessary, appro- 
priate, and efficient allocation of health care 
resources and services given or proposed to 
be given to an insured or group of insureds; 
and includes: 

(a) the review of the rendering of health care 
by providers for which provision or re- 
imbursement is made under contracts, for 
the purpose of determining whether such 
care is medically necessary; and 

(b) the evaluation of health care and health 
service facdities based on criteria defined 
in this Section. 

(11) "Utilization review entity" or "entity" 
means any person performing utilL^ation re- 
view for a payer; and means any payer per- 
forming utilization review for the payer's 
own contract. 

(12) "Utilization re\ie\v plan" or "plan" means 
a written procedure for performing utiliza- 
tion review. 

SlatuUny Authority G.S. 58-50-60. 

.0903 APPLICATION TO AM) COMPLIANCE 
BY PAVKRS 

(a) No payer whose contract covers persons in 
North Carolina may contract for review to be 
performed on his behalf with an entity that does 
not meet the requirements and standards of this 
Section. No payer whose contract covers per- 
sons in North (Carolina may pcrtbrm review for 
his own contract unless he meets the require- 
ments and standards of this Section. 

(b) Payers subject to this Section have 90 days 
after October 1, 1990, to comply with this Sec- 
tion. On or before April 1 of each year, every 
payer subject to this Section shall pro\ide the 
Commissioner with a certification that the payer 
is in compliance with this Section. Each certif- 
ication shall be accompanied by a nonrefundable 
fding fee as provided by statute. 

(c) This Section does not apply to utilization 
review performed solely under contract with the 
federal government for review of patients eligible 
for services under Titles XVIII (.Medicare) or 
XIX (.Medicaid) of the federal Social Security Act 
or under the Civilian Health and Medical Pro- 
gram of the Unifonncd Scr\iccs (CILWIPUS). 

(d) The Commissioner may refuse to issue or 
renew and may suspend or revoke a license, if he 
determines that a payer has failed or refused to 
comply u ith the provisions of this Section or any 
order issued pursuant to this Section. 

Statinoty Authoritv G.S. 58-3-100(1): 58-50-60; 
97-93(bJ. 



.0904 RKQLIREMENTS FOR UTILIZATION 
REVIEW 

In addition to other requirements prescribed by 
this Section, every agreement between a payer 
and an entity and every plan of a payer perform- 
ing review for its own contracts shall contain the 
following: 

(1) a provision for advance notice to insureds 
of any requirements for precertification or 
preapproval of the necessity of health care 
and any other prerequisite to approval of 
payment; 

(2) a provision for an appeals process in ac- 
cordance with 11 NCAC 12 .0914; 

(3) policies and procedures that will ensure that 
a representati\e of the entity, authorized to 
approve the medical necessity of health care, 
is available to insureds and providers in ac- 
cordance with 1 1 NCAC 1 2 .0907; 

(4) policies and procedures to ensure that the 
entity shall communicate its decision on 
proposed nonemergency he;dth care no later 
than 48 hours after initial contact by the in- 
sured, his representative, or his provider; or 
if additional information is requested by the 
entity, no later than 48 hours after receipt 
by the entity of such information; and that 
if the entity fails to meet such deadline, such 
care shall be deemed to be medically neces- 
sary; 

(5) a pro\ision for notification to pro\iders and 
insureds of the requirements of the utiliza- 
tion review plan; 

(6) a provision that if health care is deemed to 
be medically necessary by the entity or payer 
and that decision is communicated to the 
insured or his provider, the payer shall pro- 
vide co\erage for such care regardless of 
whether such care is covered by the contract; 
and 

(7) policies and procedures designed to ensure 
confidentiality of insureds' medical records 
and personal information in accordance with 
11 NCAC 12 .0911(d). 

.Statuton' Authority G.S. 58-50-60. 

.0905 L IILIZAIION RKMEW PLAN 

(a) Hvery payer subject to tlus Section shall, 
at the request of the Commissioner, pro\ide the 
Commissioner a copy of the utilization review 
plan that is used by an entity with which it con- 
tracts or that is used b\' the payer. 

(b) L:\ery plan shall contain: 

(1) specific standards and procedures to be 
used in e\'aluating the medical necessity 
of health care; 



5:4 M)RTH CAROLINA REGISTER May 15, 1990 



2,SS 



PROPOSED RULES 



(2) a provision that determinations of medical 
necessity of health care shall only be made 
in accordance with this Section; 

(3) identification of the methodology and as- 
sumptions employed in the de%elopment 
of the standards applied under the plan; 

(4) assur;mces that the standards and criteria 
to be applied in determinations of medical 
necessity accurately reflect current prac- 
tices and standards of the geographic re- 
gion in which they are to be applied; and 

(5) that any ad\erse decisions shall be re- 
viewed in accordance with 11 NCAC 12 
.0914. 

Statutory Authority G.S. 5S-50-60. 

.0906 MlMMl \t SrANOARnS FOR 

L I ILI/ATION KF\ IKW FN TITIES 

(a) The review of bills of pro\iders shall be 
limited to whether the care was actually provided 
and to whether the care was medically necessary. 

(b) f^ach entity sh;dl apply professionally de- 
veloped norms of care, diagnosis, and treatment, 
based upon typical patterns of practice within 
North Carolina and the geographic region or re- 
gions within North Carolina ser\ed by the entity 
as principal points of e\aluation of resiew, taking 
into consideration national norms where appro- 
priate. Such norms with respect to treatment for 
particular illnesses or health conditions shall in- 
clude: 

(1) the t\pes and extent of the health care 
that, taking into account differing but ac- 
ceptable modes of treatm.ent and methods 
of organizing and delivering care, are con- 
sidered within the range of appropriate 
diagnosis and treatment of such illness or 
health condition, consistent with profes- 
sionally recognized and accepted patterns 
of care; and 

(2) the type of health service facility that is 
considered, consistent with such stand- 
ards, to be the type in which health care 
that is medically appropriate for such ill- 
ness or condition can most economicall\ 
be provided. 

As a component of the norms described in this 
Section, the entity shall take into account the 
special problems associated with delivering care 
in remote rural areas, the a\'ailability of scr\ice 
options to inpatient hospitalization, and other 
appropriate factors that could ad\-erscly affect the 
safety or effecti\cness of treatment pro\idcd on 
an outpatient basis. Other appropriate factors 
include the distance from an insured's residence 
to the site of care, family support. a\'ailability of 
pro.ximate optional sites of care, and the insured's 



ability to carry out necessary or prescribed self- 
care regimens. 

(c) Each entity shall make arrangements to use 
the services of persons who are licensed practi- 
tioners of or specialists in the various areas of 
health care and shall have available at all times 
the services of sufficient numbers of registered 
nurses, medical records technicians, or similarly 
qualified persons, supported and supervised by a 
licensed physician, to carry out its review. 

(d) Before rendering an adverse decision, each 
entity shall review the information provided to 
the entity in accordance with 1 1 NCAC 12 .0908. 

(e) No health care provider shall be permitted 
to review health care provided to an insured if 
he was directly responsible for providing such 
health care in or by an institution, organization, 
or agency, in which he or any member of his 
family has, directly or indirectly, a significant fi- 
nancial interest. For the purpose of this Rule, a 
health care provider's family includes only his 
spouse, other than a spouse who is legally sepa- 
rated from him under a decree of divorce or sep- 
arate maintenance; children, including legally 
adopted cliildren; grandchildren; parents; and 
grandparents. 

(f) No entity shall use the services of any health 
care provider to make adverse decisions with re- 
spect to the professional conduct of or act per- 
formed by a different category of health care 
provider. 

Staiutofy Authority G.S. 58-50-60. 

.0907 ACCFSSIBIFIT^ 

An entity shall provide free telephone access to 
insureds and providers at least 40 hours per week 
during normal business hours. Payers using en- 
tities located outside of the eastern tune zone 
must provide insureds advance written notifica- 
tion of the eastern time hours during which those 
entities are accessible; provided that such hours 
shall be no less than 40 hours per week. It is the 
responsibility of the entity to install and maintain 
an adequate telephone s\ stem and equipment. 
i\n adequate telephone system must include, 
among other features, the abilities to monitor 
downtime in the telephone svstem, to track lost 
calls, and to accept and record incoming calls 
outside of nonnal business hours. The Com- 
missioner may determine, upon written request, 
that other telephone systems are adequate in 
special circumstances. 

Statuton Authority G.S. 5S-50-60. 

.0908 STANDARD FORM FOR INFOR^F\TION 



289 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



PROPOSED RULES 



(a) The information required by an entity, 
whether transmitted electronically, by telephone, 
by mail, or otherwise, shall routinely be limited 
to those data listed in Paragraph (b) of this Rule. 
Additional information shall only be required 
when special circumstances warrant. Additional 
information shall not be requested that is unnec- 
essar>', duphcative, or unduly burdensome; nor 
shall such additional information be requested 
solely for the purpose of delay. 

(b) The Commissioner shall prescribe a form 
that lists the information that may be elicited by 
entities from providers and insureds in perform- 
ing review. The form shall comprise and cover 
specifics for the following general information: 

(1) patient information, including full name, 
address, date of birth, gender, social secu- 
rity or HMO ID number, and name of 
payer per ID card; 

(2) insured information if different from pa- 
tient, including fuU name, address, social 
security or HMO ID number, relation to 
patient, employer, contract, group, or 
HMO ID number, and other coverage; 

(3) attending provider information, including 
full name, address, telephone, degree and 
specialty, tax ID number, and provider, 
HMO or PPO number; 

(4) clinical information, including primar>' di- 
agnosis and ICD DS.M codes, secondary' 
diagnoses, procedure(s) or treatment(s), 
second opinion requirement if any, and 
second opinion waiver if any; 

(5) clinical information to support appropri- 
ateness and level of service requests, such 
as H and P, lab, or X-ray, and any dis- 
charge planning; 

(6) resources, including facility type, name, 
address, and telephone, any surgical as- 
sistant information, anesthesia if any, ad- 
mission date, procedure date, and 
requested length of stay; and 

(7) continued stay if any, including date, entity 
contact, provider contact, additional days 
or \isits requested, reasons for extension, 
diagnosis, treatment plan. 

Statutory Authority G.S. 58-50-60. 

.0909 MEDICAL CRIIKRI.V 

Utilization review decisions shall be made in 
accordance with accepted current medical crite- 
ria, taking into account special circumstances of 
each case that may require a deviation from the 
norm stated in the medical criteria. Medical ne- 
cessity shall be determined by health care pro- 
viders who are knowledgeable of the standards 
of health care and utilization in North Carolina 



and its geographic regions. Criteria must be ob- 
jective, clinically valid, and compatible with es- 
tablished principles of health care in North 
Carolina and its geographic regions. 

Statutory Authority G.S. 58-50-60. 

.0910 .ADVERSE DECISIONS 

Notification of an adverse decision shall include 
the type of review performed, the reason for the 
denial,' the alternate length or type of treatment 
that the entity deems to be appropriate, the na- 
ture of the health care criteria upon which the 
decision was based, and the opportunity for an 
appeal pursuant to 11 NCAC 12 .0914. The 
entity shall not recommend alternate health care 
if that alternate care is not a\ailable to the in- 
sured within a reasonable distance of the 
insureds home. No entity shall render an ad- 
verse decision unless it has made a good faith at- 
tempt to obtain information from the provider in 
accordance with 11 NCAC 12 .0908. 

Statutory Authority G.S. 5S-50-60. 

.0911 EMERGENCIES; WAIVERS; 

EXTENSIONS; CONEIDENTI AI.ITV 

(a) I-or emergency health care, authorization 
may be requested by the insured, his represen- 
tative, or his provider either within 48 hours of 
or by the end of the second business day follow- 
ing the rendering of the emergency health care. 

(b) In cases in which an insured's medical 
condition renders him unable to comply with re- 
\iew requirements, such requirements shall be 
waived. The request for waiver may be made by 
the insured, his representati\e, or his provider. 

(c) An entity shall promptly review a request 
from the insured, his representative, or his pro- 
vider for an extension of the original approved 
duration of health care or hospitalization. If the 
entity fails to confirm that termination of health 
care or hospitalization will occur on the original 
date authorized, the entity shall retrospectively 
review whether the extension of health care or 
hospitalization was medically or otherwise justi- 
fied. 

(d) Each entity shall develop written proce- 
dures to protect the confidentiality of medical 
record information and personal intormation, as 
those terms are defined in G.S. 58-39-15. 

Statutory Authority G.S. 58-50-60. 

.0912 EDL CATION OF INSl REDS AUOUT 
REMEW REQl IREMENTS 

TvePv" payer that requires ie\iew shall institute 
and maintain a program of education to mform 



5:4 NORTH CAROLIN.A REGISTER May 15, 1990 



290 



PROPOSED RULES 



insureds about the requirements of review, be- 
ginning on or before the date its contract is is- 
sued. A record of educational programs shall be 
kept for a period of three years for inspection by 
the Commissioner. 

Slatulory Authority G.S. 5S-50-60. 

.0913 IDENTIFIC.UION CARDS, 

CERTIFIC.\TKS. AND BOOKLETS 

L tUization review information shall be provided 
on evcrv" contract identification card, certificate, 
and benefit booklet. The inlbrmation provided 
shall include the address and telephone number 
of the entity and the hours of accessibility pur- 
suant to IINCAC 12 .0907. The ccrtillcate or 
booklet shall also contain information on the 
appeal procedure. 

Statutory Authority G.S. 5S-50-60. 

.0914 API'EALS OF .\DVERSE DECISIONS 

(a) Each entity shall establish an appeals com- 
mittee to hear and reconsider any adverse deci- 
sion that is appealed by an insured, his 
representative, or his provider. Except as pro- 
vided in Paragraph (e) of this Rule, written no- 
tification of the results of the appeal process shall 
be provided to the appelhmt no later than 30 days 
after the date the appeal is made. 

(b) The appeals committee shall comprise at 
least one provider who is practicing the same 
health care specialty as the pro\ider that renders 
or proposes to render health care to the insured 
and who did not participate in the ad\erse deci- 
sion being appealed. 

(c) Except as provided in Paragraph (e) of tliis 
Rule, a written decision shall be delivered to the 
appellant with supporting reasons no later than 
five days after the hearing. 

(d) The entity shall provide an opportunity for 
the appellant to present additional e\'idence and 
arguments during the course of the hearing. Be- 
fore rendering a final decision, the committee 
shall review the pertinent medical records of the 
insured's provider and the pertinent records of 
any facility in which health care is pro\ided to 
the insured. 

(e) Where an msured, his representative, or his 
provider requests an e.xpeditcd appeal, the entity 
must make such appeal proceeding, including 
access to its consulting providers, available within 
72 hours after the request and make decisions not 
less than one working day after the date of the 
hearing of the expedited appeal. .An expedited 
appeal may be requested only when the regular 
appeals process will cause a delay in the rendering 



of health care that would be detrimental to the 
health of the insured. 

(f) The appeals process described in this Rule 
does not apply to any adverse decision made 
solely on the basis that a contract does not pro- 
vide benefits for the health care performed or 
being requested. 

Statutory Authority G.S. 58-50-60. 

.0915 RECORDS, EXAMINATIONS, AND 
TELEPHONE ALDITS 

(a) Whenever the Commissioner deems it to 
be prudent for the benefit of insureds, providers, 
or payers, he or any person he designates may 
visit and examine the affairs of any payer subject 
to this Section or an\' entity with which the payer 
contracts to determine if the payer or entity is in 
compliance with this Section or with any orders 
that are issued pursuant to this Section. The 
Commissioner may also conduct a telephone 
audit of an entity through a person designated 
b\ the Commissioner, through a telephone util- 
ity, or both. The affected payer shall reimburse 
the Commissioner for the expenses of such ex- 
amination or telephone audit as required by 
statute. 

(b) E\er)' payer subject to this Section shall 
maintain or cause to be maintained, in writing 
and at a location to be specified to the Commis- 
sioner, records of review procedures; the health 
care qualifications of the entity's staff; the criteria 
used by the entity to make its decisions; a record 
of re\iew complaints received; a record of the 
number and t) pe of adverse decisions; a record 
of the number and outcome of any appeals; the 
procedures to ensure confidentiality of medical 
records and personal information; and a list of 
clients. Records shall be maintained or cause to 
be maintained by the pa\ er for a period of three 
years. 

Statutoty Authority G.S. 58-50-60. 

.0916 PROIIIBirED AC IS 

(a) No payer shall authorize, allow, commit, 
offer, or undertake to offer any breach of 
confidentiality of an insured's medical records or 
personal information, including the disclosure or 
publication of mdi\ idual medical records or any 
other confidential medical information. 

(b) No payer shall reimburse any entity solely 
on the basis of 

(1) amounts or expenditures saved or reduced 
by the entity; 

(2) promises by the entit\" to reduce health 
care expenditures by certain amounts or 
percentages; 



?9/ 



5:4 ^ORTH CAROLINA REGISTER May 15, 1990 



PROPOSED RULES 



(3) business plans or utilization plans targeting 
overall cost reductions by an entity. 

Statutory Authority G.S. 58-50-60. 

.0917 REPORT ON UTILIZATION REVIEW 
EXPERIENCE 

On or before April 1 of each year, every payer 
subject to this Section shall file or cause to be 
filed a report with the Commissioner, which re- 
port covers review performed for or by the payer 
during the preceding calendar year and includes 
the following: 

(1) the number and type of reviews performed; 

(2) the results of the reviews and whether ben- 
efits were denied or reduced by the payer; 

(3) the number and results of any appeals un- 
der 11 NCAC 12 .0914; 

(4) any complaints filed in any court stating a 
cause of action arising out of the perform- 
ance of review; and 

(5) a record of any complaints received about 
the performance of review. 

Statutory Authority G.S. 58-50-60. 



TITLE 15A - DEPARTMENT OF 

Em IRONMENT, HEALIH AND NATURAL 

RESOURCES 



iS otice is hereby given in accordance with G.S. 
I50B-I2 that the EHNR - Division of Coastal 
Management intends to adopt rule(s) cited as 
I5A NCAC 7M .1101 - .1102. 

1 he proposed effective date of this action is No- 
vember I. 1990. 



Th 



he public hearing will be conducted at 10:00 
a.m. on July 26. 1990 at Sheraton New Bern Hotel 
& Marina, One Bicentennial Park, New Bern, 
North Carolina 28560. 



Co 



- omment Procedures: A II persons interested in 
these matters are invited to attend the public 
hearing. The Coastal Resources Commission will 
receive written comments up to the date of the 
hearing. Any persons desiring to present lengthy 
comments is requested to submit a written state- 
ment for inclusion in the record of proceedings at 
the public hearing. Additional information con- 
cerning the hearing or the proposals may be ob- 
tained by contacting: Portia Rochelle, Di\ision of 
Coastal Management, PO Box 27687, Raleigh, 
NC 27611-7687, (919) 733-2293. 



CHAPTER 7 - COASTAL MANAGEMENT 

SUBCHAPTER 7M - GENERAL POLICY 
GUIDELINES FOR THE COASTAL AREA 

SECTION .1 100 - POLICIES TO MAINTAIN 
PRODUCTIVITY OF ESTUARINE RESOURCES 

.1 101 DECLARATION OF GENERAL POLICY 

(a) It is hereby declared that the continued 
productivity and economic viability of North 
Carolina's estuarine and public trust resources 
are necessary to maintain and support commer- 
cial fishing, recreational fishing, and aquaculture 
projects that rely on marine and estuarine re- 
sources. These industries arc important to the 
economy and lifestyle of North Carolina. The 
species of fish and shellfish that support these 
industries depend upon good water quality and 
availability of high quality habitat for their 
growth and survival. 

(b) Habitat protection and management of the 
utilization of coastal resources is the responsibil- 
ity of many agencies. The CRC has direct au- 
thority for controlling many development 
activities such as dredging, marina siting and wa- 
ter quality impacts and has undertaken control 
measures to address these activities. Reasonable 
and effective regulations should be developed by 
all responsible agencies to protect critical habitats 
and control harvesting techniques that have the 
likelihood of damaging these resources. It is 
hereby declared that the general welfare and 
public interest require that all State, Federal and 
local agencies coordinate their activities to insure 
optimal estuarine productivity. 



Statutory A uthority 
/13A-107; II3A-124. 



G.S. II3A-I02(b); 



.1 102 POLICY STATEMENTS 

(a) The Coastal Resources Commission recog- 
nizes the importance of protecting the highest 
quality coastal waters and aquatic habitats such 
as Outstanding Resource Waters and Primary 
Nursery Areas and encourages the Marine 
Fisheries Commission and other resource agen- 
cies to take the necessary steps to prevent envi- 
ronmental harm to aquatic resources from fishing 
practices. 

(b) Activities that have a high probability of 
degrading water quality or damaging the habitat 
and its living resources shall not be allowed in 
these special areas. 

(c) The Coastal Resources Commission en- 
courages the .Marine Fisheries Commission to 
develop and maintain regulations governing fish 
and shellfish har\'est practices, including me- 
chanical harvestinc and other bottom disturbing 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



292 



PROPOSED RULES 



activities to protect water quality and habitat in- 
tegrity. 

(d) The Marine Fisheries Commission is fur- 
ther encouraged to develop and maintain appro- 
priate fishing regulations to address the adverse 
impacts of trawling and other activities that are 
determmed to be detrimental to the productivity 
of the State's coastal rivers and sounds. 



(c) Speed Limit in Canals. No person shall 
operate a vessel at greater than no-wake speed 
limit within any canals connected to Hyco L^ke. 

(d) Placement and Maintenance of Markers. 
The Board of Commissioners of CasweU and 
Person Counties are hereby designated as suitable 
agencies for placement and maintenance of the 
markers implementing this Rule. 



Statutory A uthority 
//JA-W7: 1I3A-124. 



G.S. II3A-I02(b); Statutory Authority G.S. 75A-3; 75A-I5. 

TITLE 18 - SECRETARY OF STATE 



****************** 



No 



No 



of ice is hereby given in accordance with G.S. 
1 508- 1 2 that the EHNR - i\orth Carolina 
Wildlife Resources Commission intends to adopt 
rule(s) cited as ISA NCAC I OF .0363. 



date of this action is- 



1 he proposed effective 
September I, 1990. 

1 he public hearing will be conducted at 10:00 
a.m. on June IS, 1990 at Room 386. Archdale 
Building. 512 S. Salisbwy Street, Raleigh. Sorth 
Carolina 2761 1. 



Co 



omment Procedures: Interested persons may 
present their views either orally or in writing at the 
hearing. In addition, the record of hearing will 
be open for receipt of written comments from June 
4. 1990 to July 3. 1990. Such written comments 
must be delivered or mailed to the .\'. C. Wildlife 
Commission, 512 N. Salisbury Street, Raleigh, 
NC 27611. 

CHAPTER 10 - VVII DI.IFF. RKSOLKCES .WD 
\VA ITR SAFE I Y 

SLUCHAPTER lOF - MOTORBO.\rS AND 
WATER SAFE I Y 

SECTION .0300 - LOCAE WATER SAFETY 
REGLLAIIONS 

.0363 CASWELL AND PERSON 
COLNTIES 

(a) Regulated .\reas. This Rule applies only 
on that portion of the waters of Hyco Lake 
which hcs within the boundaries of Caswell and 
Person Counties and to the restricted zones indi- 
cated h\ Paragraphs (b) and (c) of this Rule on 
such waters. 

(b) Speed Limit Near Bridges. No person sh;dl 
operate a vessel at greater than no-wake speed 
limit within 50 yards of any bridges crossing over 
Hyco Lake. 



otice is hereby given in accordance with G.S. 
I50B-I2 that the Department of the Secretary of 
Stale. Securities Division intends to amend 
ruleis) cited as 18 NCAC 6 .1104, .1202, .1206, 
.1208, .1303 - .1304. .1307. .1314, .1316, .1401, 
.1509, .1602, .1701, .1811; and adopt nde(s) cited 
as IS NCAC 6 .1607. 

1 he proposed effective date of this action is 
September I. 1990. 



Th 



he public hearing will be conducted at 10:00 
a.m. on June 14, 1990 at Securities Division, 
Legislati\'e Office Building, 300 N. Salisbury 
Street - Suite 404. Raleigh, NC 2761 1. 

\^ omment Procedures: Any interested person 
may present written comments for consideration 
by the Securities Division. The hearing record 
will remain open for receipt of comments from 
May 15, 1990, through June 14. 1990. Written 
comments should be received by the Division by 
tnidnight on June 13. 1900. to be considered as 
part of the hearing record. Comments should be 
addressed to: 

Stephen M. Wallis 

Deputy Securities A dministrator 

Office of the Secretaiy of State 

Securities Division 

300 N. Salisbwy St. 

Room 404 

Raleigh. \C 27603-5909 

Any person may present oral comments at the 
hearings. Requests to speak should be presented 
in writing to Mr. Wallis at the above address no 
later than five days before the date of the respec- 
li\e hearing. Additional comments may be al- 
lowed by the Division by sign up at the public 
hearing as time allows. .411 presentations will be 
limited to 5 minutes. No fiscal note has been 
prepared pursuant to G.S. I50B-1 1 (3) in con- 
nection with these proposed changes to the ad- 



293 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



PROPOSED RULES 



niinislrative rules of the Division, as the proposed 
changes will not require the expenditure or dis- 
tribution of State funds. 

With the exception of 18 NCAC 6 .1607, which is 
proposed to be adopted as a new rule, these rules 
are amendments to the current rules of the Secu- 
rities Division at 18 NCAC 6 .1100 through .1800. 
The proposed effective date is September I, 1990. 

CHAPTKR 6 -ShXl RIIIES DIVISION 
SECTION .1 100 - GENERAL PROVISIONS 

.1104 DEFINITIONS 

(c) "Direct Participation Program" shall mean 
a program which provides for flow-through tax 
consequences regardless of the structure of the 
legal entity or vehicle for distribution including, 
but not Limited to. oil and gas programs, real es- 
tate programs, agricultural programs, cattle pro- 
grams, condominium securities. Subchapter S- 
corporate offerijigLi and aU other programs of a 
similar nature, regardless of the Lndustp," repres- 
ented by the program, or any combination 
thereof. A program may be composed of one 
or more legal entities or programs but when used 
herein and Ln any rules or regulations adopted 
pursuant hereto the term shall mean each of the 
separate entities or programs making up the 
overall program and/or the overall program itself. 
Excluded from tliis definition arc .Subchapter S 
corporate olTenngs. real estate investment trusts, 
tax quaHiled pension and proht sharing plans 
pursuant to Sections 401 and 403 (a) of the 
Internal Revenue Code and individual retirement 
plans under Section 408 of that Code, and any 
company registered pursuant to the Insestment 
Company Act of 1940. 

Statutory Authority G.S. 7SA-49(aJ. 

SECTION .1200 - EXEMI'IIONS 

.1202 RECOGNIZED SECT Rl IIES M ANl AI.S 

(a) The publications recognized by the admin- 
istrator as securities manuals for the purposes set 
forth in G.S. 78A-17(2)a. .shall be: 

(1) Standard and Poor's Corporation Re- 
cords, 

(2) Mood\ 's Industrial Manual. 

(3) Moody's 0\'er-thc-Counter Industrial 
Manual, and 

(4) Periodic supplements to each recognLzcd 
securities manual. 

Other publications may be recogni/ed by the ad- 
ministrator, on a case by case basis, upon a 
showmg that the information rct|uired by G.S. 



78A-17 (2)a. is actually contained in the publi- 
cation. 



Statutory Authority G.S. 78 A- 17 (2Ja., 
(a). 



78A-49 



.1206 LIMITED OFFERING EXEMPTION 
PLRSLANT TO G.S. 78A-17(I7) 

(a) Transactions made in reliance upon Rule 
505 or Rule 506 of Regulation D promulgated 
by the Securities and Exchange Commission un- 
der the Securities Act of 1933, as amended, 17 
C.F.R. 230.505 (1982) and 17 C.F.R. 230.506 
(1982) (and as subsequently amended), including 
anv offer or sale made exempt by application of 
Rule 508(a). as made effectne in Release No. 
33-63NQ and as amended in Release Nos. 
33-6437, 33-6663, 33-6758. and 33-6S25. shall be 
exempt from the requirements of G.S. 78A-24, 
provided there is compliance with the conditions 
and limitations of this Rule .1206 and Rules 
.1207 and .1208 of this Section. 

(7) Transactions which arc exempt under this 

Rule may not be combined w ilh offers 
and sales exempt under an\ (^ther rule or 
section of this .Act: howcN er, nothing m 
this limitation shall act as an elect um. 
Should tor an> reason, an offer and sale 
of securities made in reliance upcm the 
exemption provided by this Rule .1206 
faU to comply with all of the conditions 
hereof, the issuer ma\ claim the availabil- 
ity of any other applicable e\empti<5n. 

(8) i\ny oHlt h* Hr4c> '' 111111 U* deomotl t-t+ hci' i l> 
boLMi made m complianc g' V i ilh At» c«- 
emplinn pro' i ided by t+H-r Rule . 1 206 4" 4tt» 
i '.'i uer brt^ ■. ub '. tantiall' f cmnpliL ' tl h+ t+H- 
malenal r e'. p e ct '. vh44+ (4++-. e x c mplion. A 
failure to c(mipK w ith a terni. condition 
or requirement oj^ Suhp.lr,ll;r.l[^ll^ (a)(2i 
and (a)(3) of this Rule will not result ni 
loss of the exemption Irom the recjuire- 
ments ot (iS. 7S.\-24 lor an\ olfer or sale 
to a particular indiv ulual or enlit\ if the 
person rcKmg on the exemption nIiows: 

(.\ ) the failure to ccnnpK did not peilain to 
a temi. condition or rceiuircincnt directly 
intended to prolecl lh.it p.ii'ticiihir indi- 
\idual or entit\-: and 

(B) the l:tilure to compK' \\:is insignifK^int 
with respect \o_ the ollenng as a whole: 
and 

(C) a good faith and reasoiKihle :ittempt 
was made to compK with all applicable 
tenns. conditions and requirements of 
Subparairraphs (:i)(2) :ind (a)(3). 

Where an exemption is established only 
thr(nidt reliance upon this Sub|'i:u'aa:iph 



5:4 NORTH CAROLINA REGISTER Mav 15, 1990 



294 



PROPOSED RULES 



(8) of this Rule, the failure to comply shall 
rxmctheless be actionable by the adminis- 
trator under (j.S. 78A-47. 



Statutory Authority G.S. 7SA-I7 (17); 78A-49 
(a). 

.1208 TRANSACTIONS EXEMPT UNDER RULE 
.1206: FILING REQUIREMENTS 

(^ '44*t^ iKlmini ' jtrutor j. hall treat a* confiJ e ntiul 
rtftfci H++4- i i ubjL'ct k* public Ln ' jpoction the infer 
mat ion rociuirod M- b** fik ' d pur^ i uant k» Subpara 
graph (b)(2) ef Om* R«k> r4r24Wi unlo ' jo he s4«tli 
dotcrmin t* t+»4- such treatment v-, sot- conc i i ' jtcnt 
with ti+e public intcrc": . !. i» ' ■ ' ■ hich erwe he may 
mak e public ' juch c-vf (4+e frW inlurmation »* he 
may doom nL'ccijL . ary fof protection ef the pubhc 
mturci i t. 

(c] (4^ The provisions of this Rule .1208 shall 
not apply to offers or sales of a security made 
pursuant to Rule .1206 of this Section if the se- 
curity is offered to not more than five individuals 
who reside in this State. 

Statuton Authority G. S. 7SA-I7 (17); 7SA-49 
(a). 

SECTION .L100 - REGISTRATION OF 
SECLRIIIES 

.1303 REGISTRATION BY QUALIFICATION 

(c) The prospectus requirement of Paragraph 
(b) of this Rule may be satisfied by the use of the 
NAS.V.A form l'-7 (Small Corporate Offerintzs 
Reiiislration I'orm) (as found at_ CC H NAS.VA 
Reports 5057) if the use of that form is allowed 
by the instructions to lonn 1-7 for the securities 
offennti bcinu reuistercd. 



Statutory' Authority G.S. 7SA-27(d); 7SA-49(a). 

.1304 SECURITIES REGISTRATION AND 
FILING FEES 

(b) The aggregate offering amount of an ori- 
ginal or amended registration may be increased 
prior to or after the cffecti\encss of the registra- 
tion by providmg the administrator the following: 
(1) An additional registration tiling fee of fifty 
dollars ($50.00) if such filing occurs after 
the cffecti\e date of the ollcnng: 

Statuior\: Authority G.S. 7SA-2S(b); 7SA-2S(j); 
7SA-49{a). 

.1307 COMMISSIONS AND EXPENSES 

(a) I'he aggregate amount of all payments in- 
cluding commissions, compensation, discounts, 
fees, remuneration, mark-ups, and service charges 
paid or to be paid, directly or indirectly, to 



underwriters, dealers, salesmen and finders with 
respect to the public offering of securities shall 
not exceed ten percent of the aggregate selling 
price of the securities. For the purposes of this 
Paragraph (a), the aggregate amount of all pay- 
ments shall exclude payments related to justifia- 
ble due diligence investigation of the issuer. 

(b) The aggregate amount of all payments in- 
cluding commissions, discounts, fees, 
remuneration, mark-ups, and service charges as 
computed in I'aragraph (a) of this Rule and other 
selling expenses as described in Paragraph (d) of 
this Rule incurred or to be incurred in con- 
nection with the offer or sale of securities: ifH 
eluding b«t t+et limited ter l e gal, accounting, 
engineering, pnnting, certification, reui ii tration 
e xpen 'i e '. , rtH4 payment ', related tH- ju '. tifuibl e 4«e 
dilig e nc e inv e^. tigalion t4 the i ' i - iuer r . hall fM+t e*i- 
ceed fifteen percent ef tbe aggregate nelling price 
t+f the ^. ecuritie ii . 

( 1 ) Twenty percent of the gross proceeds of 
the offering for public offerings of two 
million five hundred thi^usand dollars 
($2.500,000) or less: 

(2) 1 ightecn percent of fhe gross proceeds of 
the olfenng for public offenngs o\er two 
million five hundred thousand dollars 
($2.500,000) and U£> to seven million five 
hundred thousand dollars ($7.500.000); or 

(3) l-iltecn percent of the gross proceeds of the 
olfenng tor public otlenngs that exceed 
seven million \\\c hundred thcuisand dol- 
lars ($7.500.000). 

(c) In an application to register securities where 
warrants, options or rights to purchase shares 
below the offering price are granted to under- 
writers, dealers and other persons with respect to 
the public offering of securities, there shall be in- 
cluded in the calculation pursuant to Paragraph 
(a) of this Rule an amount equal to the difference 
between the lowest price at which the warrants, 
options or rights may be exercised and the pubhc 
offering price of the securities at the time of ef- 
fectiveness of registration, less any amount paid 
for such warrants, options or riglits. In cases 
where no market \alue for the warrants, options 
or rights exists, a presumed fair \alue of twenty 
percent of the public offering price of the shares 
to which the warrants, options or rights pertain 
shall be used for purposes of the calculation of 
pasments pursuant to Paragraph (a) of this Rule, 
unless evidence indicates that a contrary valu- 
ation exists. For purposes of Paragraph (a) of 
this i^ule. an\ future rcgistratuMi rights of under- 
w nlcr s options, warrants, or shares at_ the issuer's 
expense shall be \ :ilued at_ one percent ol. the 
public ottering, and an\ nght ot^ fust refusal will 
be N.ilued lU one percent ot^ Hie public ollering. 



295 



:>: 



4 I\0 RTH CAROLINA R ECUS TER ^ lay 15,1990 



PROPOSED RULES 



Payments as provided in Paragraph (a) of this 
Rule which are made or to be made in con- 
nection with the sale of securities by a person in 
which the issuer has an interest or which is con- 
trolled bv or is under common control with the 
issuer shall be deemed to have been made bv the 
issuer. 



(d) Paymontn a* prcidod hf Paragraph fa) ef 
A+s Rule f i hall includ e aii canh, tieouritios ftH- 
cluding, h^ H*»4- limitod ter optiono. warrants (^ 
rights), contracts, und e rstandings with »f f»f the 
benefit ef afty other persons *» which afty 
undop i vriter »f dealer i* interested. »f anything 
el^» €>f salu e , paid, te be set- asid e , disposed eir 
ef made ift connection with th«» saie ef such se- 
curities. Payments mad e ef to be made m con 
nection v4t4t t4+e sale ©f such securitios by a 
perr i on ift ' ■ ' ■ hich Ae issuer hrw a« interest »f 
which is controlled by Bf i* under cummon con 

mad e by Ae issuer. Selling expenses as referred 
to in Paragraph (b) of this Rule may include, but 
are not limited to. the following: 

( 1 ) Solickation. conversion, or exercise fees, 
which shall be valued at the lesser of ac- 



(21 



tual cost or one percent if the fees are 
pa\able within one year of the offering; 

Consulting or financial ad\isor\' agree- 
ments or anv other tvpe of agreement or 



01 



fees, howcNcr designated, which shall be 
valued at actual cost; 
Attorney's fees for services in connection 
with the issue and sale of the securities 
and their qualification for sale under ap- 
plicable laws and regulations; 

(4) Auditors' and accountants' fees; 

(5) The cost of pnnting prospectuses, circulars 
and other documents required to comply 
with securities laws and regvilations; 

(6) (Charges of transfer agents, registrars. 



of the public offering, a written report setting 
forth the actual amounts of selling expenses in- 
curred in the public otTering. The selling ex- 
penses are to be broken down by the categories 
as in Paragraphs (a), (c), and (d) of this Rule. 

(f) A public offering or sale of securities that 
includes offers or sales by selling security holders 
may be disallowed by the administrator unless 
the following conditions are met: 

( 1 ) Selling security holders shall pay a pro rata 
share of all additional selling expenses that 
are the result of the inclusion of their 
shares in the public otTering; 

(2) I'he prospectus or offering document shaU 
disclose the amount of selling expenses 
which the selling securities holders shall 
pay; and 

(3) With the exception of underwriter's or 
broker-dealer's compensation, the pro- 
\isions of Paragraphs (f)( 1 ) and (f)(2) of 
this Rule shall not apply: 

(A) if the security holders have a written 
agreement with the issuer that was entered 
into one year or more pnor to the filing 
of the public offenng, whereby the issuer 
has agreed to pa\ all of the selling security 
holders' selling expenses, and if the selling 
securities holders ha\e held their securities 
for at least one \ear prior to the tiling of 
the public offering; or 

(B) if the secuntv holders ha\'e a wntten 
agreement with the issuer, whereby the 
issuer has agreed to pay all of the selling 
securities holders' sel ling expens es, and if 



th 



e agreement was am\ed at through 



arm s-length negotiations. 



indenture trustees, escrow holders, depos- 
itones, engineers, appraisers, and other 
experts; 
(7) Cost of authorizing and preparing the se- 
curities, including issue taxes and stamps: 
and 
(S) Other expenses incurred in connection 
with the public offering of secunties as 
detcmiined bv the administrator. 
(e) L nless otheP i vi '. e justifieil. t« (-bt? «^^e el t-be 
Sc4e te tbe public t4" outstanding i . ecunties by 
their holders alon e «^ » conjunction with tbe 
«4e ©f securities by t+te issuer. (4+e selling holders 

^^^^^U r\'^\ - <-t f ti^^ J' ^ .- ,1 rt-i ■-! t .- t-s . t '^ 1 1 . -\ »- ♦ 1-. n T- .-1 J 1 1 1 t f ■ 1 
Lllllirr l_'U T 1 \XJ 1 1 IV CTTTt^ 1 1 in T \.'\~- , cTTT KJ\ 1 1 IV IT t^J^TIT W 

ble portion ef t-b*» payments a^ provided by fttf- 
a graph fa) ©f A+s Rul e afi4 expeu '. e '. incident to 
tbe offering. The issuer shall file with the ad- 
ministrator. within 120 da\s after the termination 



(g) ff) In the e\ent of noncompliance with Par- 
agraph (a) of this Rule in reliance upon G.S. 
78A-29(b)(r) the applicant shall provide the ad- 
ministrator the following: 

(Ij A copy of the rule or rules, promulgated 
by a national securities association regis- 
tered with the Securities and l:xchange 
Commission pursuant to Section 15A of 
the Securities Exchange Act of 1934, to 
which the offering or dealer is subject; 

(2) A demonstration that the rule or rules 
were promulgated to provide safeguards 
against unreasonable profits or unreason- 
able rates or commissions or other 
charges; 

(3) Evidence of the application of the rule or 
rules to the offering in question, including 
substanthe guidelines, policy statements 
and interpretations utilized in determining 
compliance therewith; and 

(4) Such other evidence of compliance with 
such rules as the administrator so requires. 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



296 



PROPOSED RULES 



(h) (^ 'l"he administrator may modify or waive, 
upon the showing of good cause by the appli- 
cant, or upon the administrator's own initiative, 
the requirements of Parugraphri fa^ »f fb^ »f this 
Rule, in whole or in part, with respect to a par- 
ticular offcrinu of securities. 



of the Securities Act of 1933, as amended. 



Statutory Authority G.S. 
78A-29(b)(2); 78A-49(a). 



78A-:9(a)(2)f.: 



.1314 ESCROW AGREEMENTS 

Where, as a condition to registration of a secu- 
rity in North Carolina, an escrow agreement is 
required, such agreement shall provide that aU 
funds shall be returned immediately to the inves- 
tors in full, without reduction of any fees, com- 
missions or expenses unless a specified dollar 
amount of offering proceeds are received by the 
escrow agent within a specified period. The tune 
period specified in any escrow agreement may be 
extended for a time certain if agreed upon by all 
persons who have theretofore contracted to pur- 
chase the security. The escrow agent shall be a 
federal bank regulated by the Comptroller of the 
Currency or a state bank regulated by the ap- 
propriate state authority. Other depositories may 
be approved by the administrator on a case by 
case basis. The pro\isions of N.ASA A "State- 
ment of Policy Regardimz the impoundment of 
Proceeds", as found at_ CCH N/\S.\.\ Reports 
2151 et seq. (as ma\' be amended from time to 



time), are incorporated herein by reference. 
Where an escrow atireement is required as a 
condition of registration of a secuntv in North 
Carolma, the N/\S.\.\ Model Secuntv Pscrow 
Agreement, as found at ("(Tl N.\S.\.\ Reports 
1651. may be u.sed to satisfy such requirement. 

Statutory Authority G.S. 7SA-28(g); 7SA-49(a). 

.1316 LEGENDS REQUIRED 

(a) 4^4+e following informcition <+» A# extent 
appropnate) '. htill appear i-h* tfee co' i lt pago h+" 
At» pro 'i pectiu . (*F ttfty alt e motis e diKum e nt, by 
v r hate' i or nam ^ knov i u. utilii'ijd ft+f (-bt» puipo '. c ' 
t4' o If L ' ring MHi r . olling r i OcuritioL . : The informa- 
tion required by this Rule .1316 shall be pnnted 
in capital letters m bold -face roman t\ pe at least 
as hiiih as ten-point modem t\pe. and 'M_ least 
two points leaded. 

( 1 ) 4-bt» lollov i ing ! . tutement » cdpital l e tt e rr i 
prinlt ' d H* bold facL' roman typi. ' *t loQ '. t 
atr h i gh i+tr Ilmi point mod e m type tm4 at 
leu^ . t tvre point ' : , l e ad e d: The following 
infonnalion shall api^ear on the cover 
page o^ an\' prospectus utili/ed for the 
purpose of offcnng and selliniz secunties 
subject to registration bv the pro\isions 



and subject to registration by the pro- 
visions of Chapter 78A of the North 
Carolina General Statutes: 
THESH SHCLRHH-S HAVE NOT 

bit-;n api'roved or disap- 



proved by the siK^umrE^ a^^ 

EXCHANGE COMMISSION NOR 
HAS IHE SECURITIES AND EX- 
CHANGE COMMISSION OR ANY 
STATE SECURini S COMMISSION 
P.ASSED UPON THE ACCURACY 



OR ADEQUACY OF THIS 

PROSPECTUS. ANY REPRESEN- 

r.vnoN ro hie contrary is a 



CRIMINAL OEI ENSE: 



(2) 1 he following information, to the extent 
appropnate, shall appear on the cover 
page of any document utilized in con- 
nection with the offer and sale of securities 
winch are exempt from registration under 
the Secunties Act of 1933, as amended, 
but subject to a filing requirement under 
Chapter 7 8. A of the North Carolina Gen- 
eral Statutes: 

IN .MAKING AN INVEST.MENT DE- 
CISION INVESTORS MUST RELY 
ON THEIR OWN EXAMINATION 
OF THE PERSON ©ft ENTIPY G«-^ 
ATING '44«- SECURiriES ISSUER 
AND IHE lER.MS OF THE OFFER- 
ING, INCLUDING THE MERITS 
AND RISKS INVOLVED. THESE 
SECURITIES HAVE NOT BEEN RE- 
COMMENDED BY ANY FEDERAL 
OR STATE SECURITIES COMMIS- 
SION OR REGULATORY AUTHOR- 
ITY. EURIHERMORE, THE 
FOREGOING Al I HORITIIiS HAVE 
NOT CONFIRMED THE ACCU- 
RACY OR DETERMINED THE AD- 
EQUACY OF THIS DOCUMENT. 
ANY REPRESENTATION TO THE 
CONTRARY IS A CRIMINAL OF- 
FENSE; and 

(3) Ir^ U aft application fof ragi '^ tration reUit 

«»-»■» i , ~k t 1-L , t . , t . . t , - 1 1 »-i t 1 . t .' [t ■ ..' fi I A f I~. . t . . «-i r I \ . \. I 
rTTTT TTT I I I^^ , ^_' ^'VV LI 1 111' } 1 in ,1 1 1 L ' I TTT^TT 1 I IV TJ 

witli tfee SoLuntio '. a«4 Exchang e Com 
mi ' -i ' jion, t4+e foUosving lilatomont m capital 
letter ;, pnnted i» bold foc e roman typ*^ a* 
k ' U ! it a^ 14^ atr ten point modem U-{*e a«4 
at- loaot Uw+ point ' . I leaded: If these secu- 
rities are offered or sold pursuant to Sec- 
tion 4(2) ot' the Secunties Act ot' 1933. as 
amended, or under the proMsions ot^ Reg- 
ulation D. the following statement shall 
also appear on the co\er page o[ an\^ ot- 



297 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



PROPOSED RULES 



ferin,^ document utilized in connection 
with the offer and sale of the securities: 
THESE SECURITIES ARE SUBJECT 
TO RESTRICTIONS ON 

TRANSFERABILITY AND RE^SALE 
AND MAY NOT BE TRANSFERRED 
OR RESOED EXCEPT AS PERMIT- 
TED UNDER THE SECURITIES ACT 
OF 1933, AS AMENDED, AND THE 
APPLICABEE STATE SECURIFIES 
EAWS, PURSUANT TO REGISTRA- 
TION OR EXEMPTION 1 HERE- 
FROM. INVESTORS SHOULD BE 
AWARE THAT THEY WILL BE RE- 
QUIRED TO BEAR THE FINAN- 
CIAL RISKS OF THIS INVESl MENT 
FOR AN INDEFINITE PERIOD OF 
TIME. 
(b) Any prospectus which depicts the United 
States Securities and Exchange Commission's 
comparable legend pursuant to a registration 
statement filed under the Securities Act of 1933 
or a letter of notification under Regulation A or 
a schedule under Regulation B of the General 
Rules and Regulations of the Securities Act of 
1933 will be considered in compliance with Par- 
agraph (a). 

Statutory Authority G.S. 7SA-I0{a); 7SA-49(a); 
78A-49(b). 

SECTION .1400 - REGISTRATION OF DEALERS 
AND SALESMEN 

.1401 APPLICATION FOR REGISTRATION 
OF DEALERS 

(b) The application for registration as a dealer 
shall be filed as follows: 

NASD member dealers shall file applica- 
tions for initial registration in the State of 
North Carolina with the NASAA NASD 
Central Registration Depository, P.O. 
Box 37441, Washington. DC. 2(1013 and 
shall file a manually executed lonn BD 
directly with the Sccuntics Di\ision. /\p- 
plications for renewal of registration shall 
be filed oni\' with the Central Registration 



01 



Depository 
tion); 



see Rule .1406 ot^^ this Sec- 
tion); 

(2) Non-NASD member dealers shall file all 
applications for registration in the State 
of North (Carolina directly with the Sccu- 
ntics Djyision. 
(c) ffef I he dealer shall file with the administra- 
tor, as soon as practicable but in no eycnt later 
than thirty days, notice of any disciplinary action 
taken against the dealer by any exchange of 
\yhich the dealer is a member; the Securities and 



Exchange Commission; the Commodity Futures 
Trading Commission; any national securities as- 
sociation registered with the Securities and Ex- 
change Commission pursuant to Section 15A of 
the Securities Exchange Act of 1934 or any state 
securities commission and of any civil suit filed 
against the dealer alleging violation of any federal 
or state securities laws. If the information con- 
tained in any document filed with the adminis- 
trator is or becomes inaccurate or incomplete in 
any material respect, the dealer shaO file a cor- 
recting amendment as soon as practicable but in 
no event later than thirty days. 

(d) (e^ Registration becomes effective at noon 
of the 30th day after a completed application is 
filed or such earlier time upon issuance of a li- 
cense or written notice of effective registration, 
unless proceedings are instituted pursuant to G.S. 
78A-39. The administrator may by order defer 
the effective date after the filing of any amend- 
ment but no later than noon of the 30th day after 
the filing of the amendment. 

(e) (4^ Every dealer shall notify the administra- 
tor of any change of address, the opening or 
closing of any office (including the office of any 
salesman operating apart from the dealer's 
premises) or any material change thereto, in 
writing as soon as practicable or by filing con- 
currently upon fifing with NASD an appropriate 
amendment or schedule to Form BD or any 
successor form. 

Statutory Authority G.S. 78A-36(a); 7SA-37(a); 
78A-37(b); 78A-37(d); 78A-38(c): 78A-49(a). 

SECTION .1500 - MISCELLANEOUS 
PROVISIONS 

.1509 FORMS 

Ihc following forms are available upon request 
from the Sccuntics Division for use in complying 
with the provisions of Chapter 78A (the North 
C^iroUna Securities Act) of tjie North Carolina 
Cjcneral Statutes and the rules promulgated 
thereunder: 

(8) North Carohna Securities Admiiustrator's 
Dealer Bond (Form NCDB); im^ 

(9) Certiffcation of Deposit of Cash or Secu- 
rities (Fornn CDCS); and 

( 1 0) Small Corporate Offerings Registration 
Form ( Form U-7). 

Statutory Authority G.S. 78A-49(a){b). 

SECTION .1600 - REGLSTR.VTION OF 
QUALIFIED BUSINESSES 

.1602 PROCEDURE FOR APPLICATION FOR 
REGlSTR.vnON 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



29S 



PROPOSED RULES 



(d) Specific Information and Representations 
Required — Qualified Business Venture. The 
application for registration of a "qualified busi- 
ness \cnturc" shall contain the following infor- 
mation and representations on a form entitled 
"Attachment B - Qualified Business Venture" 
available upon request from the Securities Divi- 
sion: 

(1) a certification that the facts set forth in 
G.S. 105- 163.0 13(b) (l)-(4) apply to the 
applicant business, and a letter uhich: 

(A) dcscnbes the business actiMties in 
which the applicant business is or will be 
enkiaijcd: 

(R) descnbcs how such acti\itics meet the 
requirements of G^S. 105- 1^3J)13(b)(3); 

(( j states \\ hethcr the applicant business is 
or w ill be engaized in an\ of the acti\ities 
listed in G.S. 105- 163. (113(b)(4): and 

(D) states an estuiKite of the percentaize of 
the iiross rexenues expected to he 'gener- 
ated bv the actiMties listed in Cj.S. 
105-163.ilI3(h)(4). 

(e) Specitlc Iiit'onnation and Representations 
Rec]uired -- Qualified Grantee Business. The 
application for registration of a "qualified grantee 
business" shall contain the following infomiation 
and representations on a fonn entitled "Attach- 
ment C -- Qualified Grantee Business" available 
upon request from the Securities Division: 

(1) a certification that the facts set forth in 
G.S. 105- 163.013(c) (l)-(3) apply to the 
applicant business, and wntten e\idence 
of the receipt of the urant or fundinii re- 
quired bv CJ.S. ll)5-1^3-i)13(cl(3) within 
the three \ears preceding the date of the 
application for rej-^tration or t_or renewal 
of rea-'tration: 

Slatutoiy Authority G.S. 105-163.013. 

.1607 FORMS 

for use in registering as a qualified business or 
in renewing a registration as a c|ualified business 
pursuant to G.S. 105-163.013, the following form 
is a\'ailable from the Securities Disision upon 
request: .Application For Registration .As A 
Qualified In\estment Organization, Qualified 
Business \'enture (Qualified Grantee Business. 

Statutoiy .-\iithority G.S. I05-I63.0l3(dj. 

SFC HON .1700 - KKfilSIR ATION OK 

IWKSIMIM ADMSKKS AM) INAKSIMKM 

.VD\ I^KR KFI'RtSl-M.V ri\ FS 

.1701 DFFIMFIONS 



I-or purposes of Chapter 78C of the North 
Carolina General Statutes and Sections . 1 700 and 
.1800 of these Rules, the following definitions 
shall apply: 

(5) "Financial Planner" [as used in G.S. 
78(%2( 1 )| includes a person who pro\ides 
or offers to provide ad\isor\' sen'ices to cli- 
ents or to prospecti\e clients regarding the 
management of their financial resources 
based on an anahsis of indi\idual client 
needs. I'he Di\ision hereby incorporates bv 
reference the concepts of "financial 
planning" found in Section I of SFC Release 
No. IA-IO'j:. October 8,~ iq87, 52 FR. 
38400 (CCll Federal Securities Faw Repor- 
ter 5h.l56F;): 

(6) "Holds (oneself) out" [as used in G.S. 
7XC-2( 1 )| means ad\ertises. announces, re- 
presents, commvinicates. publishes, dis- 
closes, or makes kncnvn. bv an\" means or 
manner, that one will pro\ide or is willing 
to pro\ide the services referred to in Cj.S. 
78C-2( 1 I to other persons: 

(7) 1 he pertormance of in\estment ad\isor\' 
ser\"ices is "soleh' incidental" [within the 
meaning of (i.S. 7SC-2( 1 )(c) and (d)[ to the 
practice of a profession or to the conduct of 
a business \\ hen the person perionnmiz such 
services neither makes an\ charge nor re- 
cei\es an\ compensation, either direct or in- 
direct, that [2 properly allocable to his 
rendering of such services. Ihe Division 
hereb\' incorporates bv reference the con- 
cepts tbund m Sections H (,\)(\) and \\_ {_\V]_ 
ot' SFC Release 1A-1(W2. October 8. F)87. 
52 1 .R. 3S4(I() (CCII lederal Securities 1 aw 



Reporter 56.15M ). 

Statutoty .-iuthorily G.S. "SC-30(a). 

SFCFION .1800 - MFSCFFFANFOl S 
I'RO\ ISIONS - IN\ FSFMFNT AD\ ISERS 

.1811 FORMS 

For use in compliance with the rccjuirements of 
the provisions of Chapter 78C of the North 
Carolina General Statutes and the rules 
promulgated thereunder, the following forms are 
available upon request from the Secunties Di\i- 
sion: 

(7) North Carolina Securities Division Invest- 
ment Advisers Bond (Form .NCI.\B): »«4 

(8) Certification of Deposit of Cash or Secu- 
rities -- Investment .Advisers (Form 
CDCS-IA); 

[22 Consent To Service of Process (For Ise 
Bv Investment .Xdvisers and Investment 
.Adv jscr Representatives Onlv): 



299 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



PROPOSED RULES 



(10) Consent To Service of Process (For Use 
By Investment Adviser Representatives 
Only); and 

(1 1) Corporate Resolution (For Use By In- 
vestment Advisers Only). 

Statutory Authority G.S. 78C-30(a); 78C-30(b). 

TITLE 21 - OCCUFATIONAL LICENSING 
BOARD 



ly otice is hereby given in accordance with G.S. 
I SOB- 1 2 that the N.C. Board of Nursing intends 
to amend rule(s) cited as 21 NCAC 36 .0218. 

1 he proposed effective date of this action is 
September I. 1990. 

1 he public hearing will be conducted at 1 :00 
p.m. on June 21, 1990 at \.C. Board of Nursing 
Office, 3724 National Drive, Suite 201 , Raleigh, 
NC 27612. 



Co 



'Omment Procedures: Any person wishing to 
address the Board relevant to the proposed rules 
should notify the Board by noon on June 20, J 990, 
register at the door the day of the hearing, and 
present the Hearing Officer with a written copy 
of the oral testimony. Oral presentations will be 
limited to three minutes per speaker. Written 
comments only should be directed, five days prior 
to the hearing date, to the N.C. Board of Nursing, 
P. O. Box 2)29, Raleigh, NC 27602. 

CHAPTER 36 - BOAKI) OF M RSING 

SFXTION .0200 - IICKNSl KK 

.0218 LICENSl RE WITIIOl T EXAMINATION 
(BY ENDORSEMENT) 

(a) The Board will provide an application form 
which the applicant who wishes to apply for 
licensure without examination (by endorsement) 
must complete in its entirety. 

(1) The applicant for licensure by endorse- 
ment as a registered nurse is required to 
show evidence of: 

(A) completion of a nursing program ap- 
proved by the jurisdiction of original 
licensure; 

(B) attainment of a standard score equal to 
or exceedmg 350 on each test in the State 
Board Test Pool Examination adminis- 
tered prior to Juh' 1982; or a standard 
score of 1600 on the licensing examination 
developed by the National Council of 
State Boards of Nursing, Inc. beginning in 



July 1982 and up to and including the July 
1988 examination; or beginning in Febru- 
ary 1989, a score of "PASS". An excep- 
tion to this requirement is made for the 
applicant who was registered in the ori- 
ginal state prior to Soptomber 1956 April 
1964. Such applicant must have attained 
the score, on each test in the series, which 
was required by the state issuing the ori- 
ginal certificate of registration; 

(C) mental and physical health necessary to 
competently practice nursing; and 

(D) unencumbered active license in original 
jurisdiction of licensure or another juris- 
diction; if the license in the other jurisdic- 
tion has been inactive or lapsed for five 
or more years, the applicant wiU be sub- 
ject to requirements for a refresher course 
as indicated in G.S. 90-171.35 and 
90-171.36. 

(2) The applicant for licensure by endorse- 
ment as a licensed practical nurse is re- 
quired to show evidence of: 

(A) completion of a program in practical 
nursing approved in the jurisdiction of 
onginal licensure or by meeting the re- 
quirements as cited in Rule .021 1 (b)(2)(3) 
of this Section. The applicant who was 
graduated prior to July 1956 will be con- 
sidered on an individual basis in liglit of 
licensure requirements in North Carolina 
at the time of original licensure; 

(B) achievement of a passing score on the 
State Board Test Pool I'xamination or the 
licensing examination developed by the 
National ('ouncil of State Boards of 
Nursing, Inc. If originally licensed on or 
after September 1, U)57, and up to and 
including the April 19SS e.xaminaticm, an 
applicant for a North Carolina license as 
a practical nurse on the basis of examina- 
tion in another state must have attained a 
standard score equal to or exceeding 350 
on the licensure examination. Beginning 
in October 19SS, an applicant must ha\'c 
received a score of "PASS" on the 
licensure examination. The applicant 
who was licensed prior to September 1, 
1957 in the original jurisdiction will be 
considered on an indi\idual basis in liglit 
of the licensure requirements in North 
Carolina at the time of original licensure; 

(C) mental and physical health necessary to 
competently practice nursing; and 

(I)) unencumbered acti\e license in original 
jurisdiction of licensure or another juris- 
diction; if the license in the other jurisdic- 
tion has been inactive or lapsed for five 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



300 



PROPOSED RULES 



or more years, the applicant will be sub- 
ject to requirements for a refresher course 
as indicated in G.S. 90-171.35 and 
90-171.36. 

(b) Ihe North Carolina Board of Nursing wiU 
require applicants for licensure by endorsement 
to pro\ide proof of second;iry education 
achievement only if deemed necessary^ for iden- 
tification, or other just cause. 

(c) Individuals who have been licensed in 
Canada on the basis of the Canadian Nurses' 
Association Test Service Examination written in 
the English language are eligible to apply for 
registration by endorsement. 

(d) A nurse educated and licensed outside the 
United States of America is eligible for North 
Carolina licensure by endorsement if the nurse 
has: 

(1) proof of education as required by the 
Board or a certificate issued by the Com- 
mission on Graduates of Foreign Nursing 
Schools; and 



(2) proof of passing the licensing examination 
developed by the National Council of 
State Boards of Nursing, Inc. in another 
jurisdiction. 

(e) WTien completed application, evidence of 
current license in another jurisdiction, and fee are 
received in the Board office, a temporary license 
is issued to the applicant. Employer references 
may be requested to validate competent behavior 
to practice nursing. 

(f) Facts provided by the applicant and the 
Board of Nursing of original licensure are com- 
pared to confirm the identity and vahdity of the 
applicant's credentials. Status in other states of 
current licensure is verified. Wlien eligibility is 
determined, a certificate of registration and a 
current license for the remainder of the calendar 
year are issued. 



Statulory 
90-171.33: 



Aulhority 
90-171.37'. 



G.S. 90-/7/. 23(b); 



Mil 



5:4 SORTH CAROLIN.i REGISTER May 15, 1990 



FINAL RULES 



1 he List of Rules Codified is a listing of rules that were filed to be effective in the month indicated. 

l\ules fled for publication in the SCAC may not be identical to the proposed text published pre- 
viously in the Register. Please contact this office if you have any questions. 

/\. dopted rules filed by the Departments of Correction, Revenue and Transportation are published 
in this section. These departments are not subject to the provisions ofG.S. 150B, Article 2 requiring 
publication in the N.C. Register of proposed rules. 

LJ pon request from the adopting agency, the text of rules will be published in this section. 

1 unctuation, typographical and technical changes to rules are incorporated into the List of Rules 
Codified and are noted as * Correction. These changes do not change the effective date of the nde. 



NORTH CAROLINA ADMINISTRATIVE CODE 

LIST OF RULES CODIFIED 

MAY 1990 



AGENCY 
DEPARTMENT OF ADMINISTRATION 



AC! ION TAKEN 



1 NCAC 30A .0301 

30D .0101 - .0103 
.0201 - .0202 
.0301 - .0304 
.0306 
30E .0101 - .0103 
.0201 - .0202 
.0301 - .0302 
.0304 - .0306 
.0402 



Amended 
Amended 
Amended 
Amended 
.'Vmendcd 
.-\mcndcd 
Amended 
Amended 
Amended 
Amended 



DEPARTMENT OF AGRICl ETl RE 



NCAC 42 .0102 
.0201 



Amended 
Amended 



DEPARTMENT OF ECONOMIC AND COMMl NITV DEVELOPMENT 



NCAC 



12C .0007 




19Q .0102 




.0201 




.0301 - 


.0304 


.0501 - 


.0503 



ARRC Objeetion 
Temp. Amended 
Expires 09-08-90 
Temp. /Vmendcd 
Expires 09-08-90 
Icmp. Amended 
H.xpircs 09-08-90 
Temp. Repealed 
Hxpircs 09-08-90 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



302 



FISAL RULES 



OFI ICKS OF GO\FR\OR/I IFl IKNANT CO\ FRNOR 



XCAC 



Executive Order Number 107 
Eff. March 14, 1990 
Executive Order Number 108 
Eff. March 19, 1990 
Executive Order Number 109 
EtT. March 29, 1990 
Executive Order Number 110 
EtT. March 29, 1990 



DFI'ARIMFM OF HI MAN RFSfM RCFS 



10 



NC.AC 



3C 


.1716 




7A 


.0107 
.0209 




lOA 


.2501 - 


.2507 


14C 


.0102 
.0320 






.1001 - 


.1002 




.1004 






.1007 - 


.1008 




.1011 






.1133 






.1137 






.1139 






.1143 






.1401 






.1405- 


.1408 


14E 


.0601 




14H 


.0102- 


.0104 




.0201 - 


.0202 




.0206 - 


.0207 




.0301 - 


.0303 




.0401 






.0403 




14K 


.11330 - 

.0347 

.0361 


.0331 


14L 


.0101 
.0401 
.0501 




14M 


.0201 
.0301 
.0401 
.0501 
.0708 




14N 


.0301 
.0401 
.0501 
.0601 
.0801 




140 


.0101 
.0201 
.0301 
.0401 
.0501 




15A 


.0401 





Amended 

* Correction 

* Correction 
.Adopted 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 
/Vm ended 
Amended 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 



M)3 



5:4 AORTH CAROLIXA REGISTER May 15, 1990 



FINAL RULES 





.0404 






.0501 






.0601 




15E 


.0601 
.1002 




16A 


.0101 
.0105 




17A 


.0104- 
.0202 


.0105 


18A 


.0135 




I8D 


.0208 




I8E 


.0114- 
.0217 


.0116 




.0222 - 


.0224 




.0225 




18F 


.0115- 
.0120 


.0119 




.0121 - 


.0122 




.0312 






.0319 




I8H 


.0107 
.0116 




181 


.0118 




18J 


.0110 
.0115 






.0212- 


.0213 




.0304 






.0507 






.0601 




I8L 


.0701 
.1101 
.1301 




18.\I 


.0107 
.0406 
.0505 
.0607 
.0701 
.0801 
.0901 
.0907 
.1001 
.1303 
.1401 




180 


.0517 




18P 


.0901 
.1001 




18S 


.0201 




18U 


.0201 






.0203 - 


.0204 




.0303 - 


.0304 




.0403 - 


.0404 




.0501 






.0503 - 


.0504 




.0601 






.0603 - 


.0604 




.0704 






.0803 - 


.0804 




.0903 - 


.0904 




.1001 - 


.1003 



* Correction 

* Correction 

* Correction 
Repealed 
Repealed 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 
Repealed 
Amended 
Repealed 
Amended 

* Correction 
Amended 

* Correction 

* Correction 

* Correction 

* Correction 
Amended 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 
Amended 
Amended 
Amended 
Amended 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* CoiTcction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 

* Correction 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



304 



FINAL RULES 



.1101 -.1103 * Correction 

.1202 * Correction 

18V .0002 * Correction 

.0003 - .0004 Amended 

.0005 * Correction 

.0006 - .0008 * Correction 

18W .0001 - .0004 * Correction 

20C .0101 /Vmended 

.01 02 -.01 13 Repealed 

.0114 /Vmended 

.01 15 -.01 18 Repealed 

.01 19 -.0120 y\mended 

.01 22 -.01 24 /Vmended 

.0301 - .0303 /\mended 

.0305 -.03 15 Amended 

.0316 Adopted 

22F .0104 /Vmended 

22G .0302 Amended 

.0408 Amended 

.0412 - .0413 /Vmended 

.0509 /Vmended 

221 1 .0103 - .0104 /Vmended 

.0201 /Vmended 

.0601 /Vmended 

24A .0401 Amended 

.0402 Repealed 

.0504 .Amended 

26A .0001 Repealed 

.0002 /Vmended 

26B .0106 /Vmended 

.0121 /Vdopted 

.0205 /Vmended 

26C .0003 /Vmended 

26D .0007 - .0008 /Vmended 

.0013 /Vmended 

26G .0101 /Vmended 

.0106 /Vmended 

.0201 /Vmended 

.0401 Repealed 

.0501 /Vmended 

.0504 /Vmended 

.0511 /Vmended 

.0701 Repealed 

.0703 /Vmended 

.0801 /Vmended 

26H .0106 /Vmended 

.0204 Amended 

.0302 Amended 

.0602 /Vmended 

.0605 /Vmended 

261 .0101 - .0105 /Vmended 

.0107 Amended 

26J .0101 Amended 

30 .0217 Temp. /Vdopted 

Expires 08-31-90 

35A .0001 Repealed 

.0003 /Vmended 

35B .0001 Repealed 

.0006- .0007 .^Vmended 



M)5 5:4 NORTH CAROLINA REGISTER May 15. 1990 



FINAL RULES 



35D .0101 Repealed 

.0201 Amended 

.0203 - .0204 Amended 

.0301 Amended 

.0303 - .0304 Amended 

.0502 Amended 

35E .0101 - .0104 Amended 

.0106 iVmended 

.0201 Amended 

.0204 y\mended 

.0303 - .0304 Amended 

.0306 - .0307 Amended 

.0313 Amended 

.03 15 -.03 16 Amended 

35F .0008 Amended 

36 .0102 Repealed 

.0104 Amended 

.0201 Amended 

.0203 Amended 

.0301 - .0302 Amended 

.0702 /Vmended 

.0705 Amended 

.0706 Repealed 

40 .0101 Repealed 

41 A ,0006- .0007 Amended 

41 E .0403 Amended 

.0406 /Vmcndcd 

.0502 - .0507 Amended 

.0511 Amended 

.0514 Amended 

.0603 - .0604 Amended 

.0701 Amended 

.0703 - .0704 yVmended 

41F .0402 -.0407 /Vmended 

.0502 Amended 

.0503 Repealed 

.0701 - .0702 Amended 

.0704 - .0705 Amended 

.0802 - .0803 Amended 

.0805 - .0808 Amended 

41G .0505 - .0509 Amended 

.0511 Amended 

.0513 Amended 

.0601 - .0605 Amended 

.0701 - .0705 Amended 

.0708 Amended 

.0801 Amended 

.0803 - .0808 Amended 

.0902 Amended 

.1005 -.1009 Amended 

.1011 /^Vmended 

.1013 Amended 

.1101 -.11 05 Amended 

.1201 - .1205 Amended 

.1208 Amended 

.1301 Amended 

.1303 -.1308 Amended 

.1402 Amended 

45F .0001 - .0004 Repealed 



5:4 NORTH CAROLINA REGISTER May 15, 1990 306 



FINAL RULES 



45G 


.0102 
.0106 






.0109- 


.0112 




.0114 






.0115 






.0117- 


.0119 




.0121 - 


.0122 




.0123- 


.0133 




.0134 






.0137 






.0138 






.0202 






.0304 






.0305 - 


.0306 




.0401 - 


.0402 




.0403 






.0404 






.0406 






.0408 






.0410 - 


.0412 


45H 


.0201 
.0208 






.0210 - 


.0216 




.0219 






.0220 - 


.0222 


451 


.0001 




46C 


.0105 




46D 


.0101 




46E 


.0100 




46F 


.0100 




49F 


.0001 - 


.0004 


503 


.0402 





Amended 
Amended 
Amended 
Amended 

* Correction 
Amended 
Amended 
Repealed 
/Vmended 
Repealed 
Amended 
/Vmended 

* Correction 
/Vmended 

* Correction 
Repealed 

* Correction 

* Correction 

* Correction 

* Correction 
Amended 
Amended 
Amended 

* Correction 
Amended 
Amended 

* Correction 

* Correction 

* Correction 

* Correction 
Temp. Adopted 
Expires 08-31-90 
Temp. Amended 
Expires 09-30-90 



nH'ARTMKNT OF .11 SUCK 



12 NCAC 21 .0202 Temp. Amended 

Expires 09-20-90 

nhl'ARlMKM or KNMRONMKM. IIKALHI, .WO NAM RAI KKSOl KC'KS 

15A NCAC 2D .0535 Amended 

.0902 Amended 

.0946 Adopted 

.1101 - .1108 Adopted 

2H .0602 Amended 

.0610 Adopted 

4A .0001 /Vmended 

.0005 /\mended 

4B .0006 Amended 

.0007 Amended 

.0009 - .0010 Amended 

.0016 /Vmended 

.0017 Repealed 

.0018 Amended 

.0020 Amended 

.0024 - .0025 Adopted 

4C ,0007 rVmended 



507 5:4 SORTH CAROLINA REGISTER May 15, 1990 



FINAL RULES 



4D 

4E 
7A 
7B 
7H 



71 



7J 

7K 
7L 
7M 
70 
lOB 



.0002 
.0003 
.0102 
.0001 
.0202 
.0104 
.0205 
.0208 
.0404 
.1104 
.1204 
.1304 
.1402 
.1404 
.1504 
.1604 
.1702 
.1704 
.1804 
.1904 
.0101 
.0205 
.0305 
.0401 
.0502 
.0506 
.0509 
.0102 
.0407 
.0602 
.0701 
.0203 
.0207 
.0302 
.0304 
.0.W4 
.0503 
.0104 
.0201 
.0114 
.0209 
.0212 



- .0206 

- .0209 

- .0406 

- .1205 



.1905 

.0206 
.0306 



.0507 

.0702 
.0208 



Amended 

Adopted 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

/Vmcnded 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amended 

Amentled 

Amended 

Amended 

Amended 

Amended 

.Amended 

,'\mciule(.l 

.Amentled 



OKI'MMMFM Ol IM HI 1( KIMC AIION 



16 NCAC 6D .0105 

6G .0301 - .0303 



ARRC Ohjeetion 
/Xdoiited 



IM-l'AKIMKM OK KK\ KM K 



17 



NCAC 



7B .0101 
.1401 



1702 



1602 
1701 
17(14 
1X1)2 
2101 
26111 
3001 - .3002 



Amended 
Amended 
.Amended 
.Amended 
Amended 
.\ineniled 
■Amended 
AmeiKJed 
Amended 



5:4 NORTH CAROLINA REGISTER May 15, 1990 



iOS 



FINAL RULES 



.3007 Repealed 

.4003 Amended 

7C .0103 Amended 

DFP AR IMFNT OF TRANSI'ORT ATION 

19A NCAC 3J .0306 - .0307 Amended 

.0401 Amended 

.0501 Amended 

.0508 Amended 

.0601 Amended 

BO \Rn OF [ ANO.sr.vPF .\RrnFrFrTS 

21 NCAC 26 .0307 Adopted 
BOARD OF MFOir VI FXAMINFR.S 

21 NCAC 32.\ .0004 /Vmcndcd 

32B .0205 Repealed 

0214 Amended 

0303 Repealed 

0309 Amended 

.0508 Amended 

BOARO OF FXAMINFRS OF I'M MBI^G AM) UFATING rONTRACI ORS 

21 NCAC 50 .0306 Amended 

.1102 -.1103 * Correction 

RFAF FSrXFF FKFNSINr. BOARD 

21 NCAC 5SA .0106 -.0107 Amended 

.0502 Amended 

. 1 502 /Vmended 

58C .0101 - .0105 /Vmcnded 

.0107 Amended 

.0301 - .0303 Amended 

.0306 - .0307 Amended 

.0308 Adopted 

.0309 - .0310 Amended 

.0401 - .0407 Adopted 

58D .0101 - .0102 Adopted 

.0201 - .0209 Adopted 

.0301 - .0306 Adopted 

.0401 - .0409 Adopted 

.0501 Adopted 

BO\RD OFSANFFVRFVN FXAMINFRS 

21 NCAC 62 .0407 Amended 

.0411 /Vmendcd 

OFFICF OF STMF I'FRSONNFL 



25 NCAC in .1301 -.1307 Adopted 



509 5:4 NORTH CAROLINA REGISTER Mav 15, 1990 



NORTH CAROLINA ADMINISTRA TIVE CODE CLASSIFICA TION SYSTEM 



The North Carolina Administrative Code (NCAC) has four major subdivisions of rules. Two 
of these, titles and chapters, are mandatory. 7 he major subdivision of the NCAC is the title. 
Each major department in the North Carolina executive branch of government has been as- 
signed a title number. Titles are further broken down into chapters which shall be numerical 
in order. The other two, subchapters and sections are optional subdivisions to be used by 
agencies when appropriate. 

TITLE/MAJOR DIVISIONS OF THE NORTH CAROLINA ADMIMSTRATIVE CODE 



ITLE 


DEPARTMENT 


LICENSING BOARDS 


CHAPTER 


1 


Administration 


Architecture 


2 


2 


Agriculture 


Auctioneers 


4 


3 


Auditor 


Barber Examiners 


6 


4 


Fxonomic and Community 


Certified Public Accountant Examiners 


8 




Development 


Chiropractic Examiners 


10 


5 


Correction 


General Contractors 


12 


6 


Council of State 


Cosmetic Art Examiners 


14 


7 


Cultural Resources 


Dental lixamincrs 


16 


8 


Flections 


Electrical Contractors 


18 


9 


Governor 


Foresters 


20 


10 


Human Resources 


Geologists 


21 


11 


Insurance 


I learing /\id Dealers and Fitters 


->2 


12 


Justice 


Landscape Architects 


26 


13 


Labor 


I andscape Contractors 


28 


14A 


Crime Control and Public Safety 


Marital & Family Therapy 


31 


15A 


Environment, Health, and Natural 


Medical Examiners 


32 




Resources 


Midwifery- Joint Committee 


a 


16 


Public Education 


Mortuary^ Science 


34 


17 


Revenue 


Nursing 


36 


18 


Secretary of State 


Nursing Home Admmistrators 


37 


19A 


Transportation 


Occupational Therapists 


38 


20 


Treasurer 


Opticians 


40 


^21 


Occupational Licensing Boards 


Optometry 


42 


22 


Administrative Procedures 


Osteopathic Examination and 


44 


23 


Community Colleges 


Registration 




24 


Independent yXgencics 


Phannacy 


46 


25 


State Personnel 


Physical Therapy Examiners 


48 


26 


Administrative I learings 


Plumbing and Heating Contractors 


50 






PodiatPv Examiners 


52 






Practicing Counselors 


53 






Practicing Psychologists 


54 






Professional Engineers and I and Sur\-e\ors 56 






Real Estate Commission 


58 






Refrigeration Examiners 


60 






Sanitarian F-xamincrs 


62 






Social Work 


63 






Speech and I anguage Pathologists and 


64 






Audiologists 








VeterinaPv^ Medical Board 


66 



Note: Title 21 contains the chapters of the xarious occu|~iational licensing boards. 



5:4 NORTH CAROLINA REGISTER A fay I \ 1990 



MO 



CUMULA TIVE INDEX 



CUMULA TIVE INDEX 

(April 1990 - March 1991) 



1990 - 1991 

Pages Issue 

1 - 151 1 - Apnl 

152- 235 2 - Apnl 

236- 285 3 - May 

286- 312 4 - May 



AO - Administrative Order 

AG - Attorney Generals Opinions 

C - Correction 

FR - Final Rule 

GS - General Statute 

JO - Judicial Orders or Decision 

iM - Miscellaneous 

NP - Notice of Petitions 

PR - Proposed Rule 

SO - Statements of Oruani/.ation 

TR - Temporary Rule 



a(;riclltlri: 

Plant Conservation Board, 1 PR 
Structural Pest Control Committee, 7 PR 

CRIME CONTROL AND PIBIJC SAFETY 

State Highway Patrol, 53 PR 

ECONOMIC AND COMMINII V DE\ ELOPMENT 

Banking Commission, 16 PR 
Community Assistance, 25 PR 
Milk Commission, 24 PR 

EN\ IRONMENT, HEAI.HI, AND NAM RAE RESOl RCES 

Coastal Management, 136 PR, 292 PR 

Fnvironrnental Manaizement, 54 PR, 193 PR 

Health Ser\ices, 190 f'R 

Manne Fisheries, 63 PR 

Wildlife Resources and Water Safety, 137 PR, 206 PR. 2^)3 PR 

FINAL DEC ISION I EI lERS 

Voting Rights Act. 241, 286 

FINAL Rl LES 

I ist of Rules Coditied, 143 FR, 226 FR, 302 FR 



GO\ERNOR/LT. GO\ ERNOR 

Executive Orders. 236 



ill 5:4 NORTH CAROLINA REGISTER May 15, 1990 



CUMULA TIVE INDEX 



HUMAN RESOURCES 

Health Semces, 152 PR, 245 PR 

Medical Assistance, 191 PR 

Mental Health, Mental Retardation and Substance Abuse Services, 29 PR, 

Social Services, 247 PR 

Water Treatment Facility Operators Board of Certification, 27 PR 

Youth Services, 261 PR 

INSURANCE 

Life: Accident and Heahh, 264 PR, 287 PR 

JUSTICE 

Attorney General, Office of the, 192 PR, 273 PR 

LICENSING BOARDS 

Medical Examiners, Board of 207 PR 
Nursing, Board of 300 PR 

PUBLIC EDUCATION 

Elementary' and Secondary, 141 PR, 275 PR 

REVENUE 

Sales and Use Tax, 213 FR 

SECRETARY OF STATE 

Securities Divison, 293 PR 

STATE PERSONNiEL 

State Personnel Commission, 277 PR 

TRANSPORTATION 

Motor Vehicles, Division of 222 FR 



5:4 NORTH CAROLINA REGISTER May 15, 1990 M2 



NORTH CAROLINA ADMINISTRATIVE CODE 

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